Calapan Ventures to fund projects from IPO proceeds

MANILA, Philippines - Buoyed by its recent successful initial public offering (IPO) at the Philippine Stock Exchange, utility firm Calapan Ventures Inc. (CVI) will now vigorously pursue several projects that will further boost the company’s performance in the coming years.

CVI raised P95.15 million in net proceeds when it listed 42.16 million shares in the local bourse last Nov. 24.

Unicapital Inc., CVI’s sole underwriter and issue manager, earlier said the IPO was oversubscribed by three times its allotment.

Ortrud Ting Yao, CVI chief finance officer, emphasized that their company now has enough resources to proceed with its zoning works and installation of district meters and isolation valves in 26 barangays, and pursue talks for the expansion of its water service in three additional municipalities.

“With the successful IPO, we were able to raise funds that we can use in pursuing these projects,” Yao said.

She noted the zoning works will reduce CVI’s non-revenue water to 20 percent by next year that will translate to a 15 percent increase in revenues. About P90 million from the IPO proceeds will be used for the zoning works, she added.

CVI, Yao disclosed, is now also in talks with three municipalities for a joint venture project or operation of their water systems. Two of the municipalities are in Mindoro and one is in La Union.

She said the company will likewise add one more water storage facility in Calapan City that will ensure more reliable water service for the service area.